Is Your Business Compliant With Your Modern Award? (2025 Updated)

If you’re running a business, it’s likely that you’re familiar with your employees’ entitlements. For example, you’d have to know about your National Employment Standards (NES). These standards set out the minimum entitlements for every employee in Australia, regardless of what Award they may be under.

So, if your employees are under a Modern Award, what do you need to do as their employer?

What Is A “Modern Award”?

A Modern Award outlines the minimum entitlements for employees and covers a wide range of industries. In 2025, updated provisions reflect current economic conditions and industry standards. You can find the Award that applies to your industry using Fair Work’s Award Finder Tool. For further insights, our Modern Award Analysis provides a detailed breakdown of what to expect.

It sets out entitlements such as:

• Pay
• Hours of work
• Overtime
• Rosters

As an employer, it’s your responsibility to ensure that you provide your employees with all the entitlements specified in the relevant Award. Remember, these Award entitlements complement the National Employment Standards, meaning you must adhere to both sets of guidelines to remain compliant in 2025.

If your business operates under a registered enterprise agreement, then the applicable Award may not fully apply to your employees, depending on the specific terms negotiated. However, key components such as the base rate of pay must comply with Award minimums regardless, ensuring your staff receive at least what is stipulated by law.

How Do I Make Sure I’m Not Breaking The Law?

Firstly, ensure you identify and understand which modern Awards apply to your organisation’s employees. With evolving workplace standards in 2025, regular review of these Awards is essential to avoid compliance issues.

Sometimes, multiple modern Awards might apply within the same organisation. Ensure you assess each role carefully and verify the applicable Award using the updated Fair Work Award Finder Tool.

It’s crucial to incorporate the latest changes, particularly if you pay your employees on an annualised wage basis. Ensure that your calculations reflect the most recent guidelines for overtime, penalty rates, and rostering requirements in 2025.

It’s imperative to keep detailed records of any overtime accrued and clearly outline to your employees how their annualised salary arrangements are calculated. This transparency is vital for compliance and helps maintain a fair workplace environment in 2025.

How Can I Ensure I Am Compliant?

In today’s regulatory landscape, it can be challenging to stay on top of all your employee obligations. With updates extending into 2025, it’s advisable to seek legal expertise to ensure that all your employment contracts, pay scales, and work conditions comply with the relevant Awards and applicable legislation.

At Sprintlaw, we offer an Award Compliance package where our experienced lawyers review and update your employment contracts and practices, ensuring you remain compliant with the Award that applies to your business in 2025.

As part of the package, you will get:

• A comprehensive review of your employment contracts and payment structures
• A detailed summary of the key Award provisions relevant to your business in 2025
• Personalised phone consultations with a Sprintlaw lawyer to address your specific queries

This package does not determine whether an Award applies to your business. If you need assistance in making that determination, please check out our Award Determination package.

Staying informed with the latest legislative changes is an ongoing effort. In 2025, enhanced digital record-keeping and regular audits have become best practice, ensuring your systems align with both Award requirements and the National Employment Standards. For further insights on legal compliance and HR best practices, explore our Business Set-Up Guides or speak to one of our experts.

Need Help?

Given the evolving landscape in 2025, employers bear a significant responsibility to meet conditions that extend beyond the National Employment Standards. It’s essential to secure top-notch legal advice to ensure you adhere to all relevant Award provisions and industry-specific regulations.

If you would like a consultation on your options going forward, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

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